Industrial Automation Market Forecasts to 2030 - Global Analysis By Component (Software, Hardware and Services), End User (Automotive, Oil & Gas, Pulp & Paper, Chemicals, Food and Beverages and Other End Users) and By Geography

According to Stratistics MRC, the Global Industrial Automation Market is accounted for $259.15 billion in 2024 and is expected to reach $517.03 billion by 2030 growing at a CAGR of 12.2% during the forecast period. Industrial automation refers to the use of control systems such as computers or robots for handling different processes and machinery in an industrial setting. The primary objective is to replace human intervention with technological solutions that can operate continuously and efficiently, often with greater precision and speed than human workers. Industrial automation systems typically involve sensors, actuators, and PLCs (Programmable Logic Controllers) to monitor and control various operations.

According to the IBEF automobile industry report, the two-wheelers segment dominates the market in terms of volume due to a growing middle-class population, and a considerable percentage of India's population is young.

Market Dynamics:

Driver:

Rising demand for operational efficiency

The increasing emphasis on operational efficiency in industrial automation reflects a pivotal shift towards optimizing production processes and resource utilization. Businesses are increasingly leveraging advanced technologies such as Internet of Things (IoT), artificial intelligence (AI), and machine learning to streamline operations, minimize downtime, and enhance overall productivity. Automation systems are designed to not only perform repetitive tasks with precision but also to gather and analyze data in real-time, enabling proactive decision-making and predictive maintenance. This proactive approach reduces operational costs, improves product quality, and ensures compliance with stringent industry standards.

Restraint:

Integration complexity

The complexity in integrating industrial automation arises from several factors that collectively pose significant challenges. Industrial environments often involve legacy systems that were not designed to communicate or integrate seamlessly with modern automation technologies. This necessitates extensive retrofitting or replacement to ensure compatibility and functionality across the board. Each system may operate on different protocols, standards, or proprietary interfaces, complicating efforts to achieve unified control and monitoring. However, the scale and scope of industrial operations amplify integration challenges, requiring robust infrastructure, data security measures, and skilled personnel capable of handling complex integrations.

Opportunity:

Advancements in robotics and AI

Advancements in robotics and AI are revolutionizing industrial automation by significantly enhancing efficiency, precision, and flexibility across various sectors. AI-driven robotics can perform complex tasks with greater accuracy and speed than human labor, reducing errors and operational costs while improving overall productivity. Machine learning algorithms enable robots to adapt and learn from their environment, optimizing processes and minimizing downtime through predictive maintenance and real-time adjustments. Furthermore, collaborative robots (cobots) equipped with AI can safely work alongside humans, enhancing workplace safety and ergonomics.

Threat:

Cybersecurity concerns

Cybersecurity concerns pose a significant obstacle to the advancement of Industrial Automation. As industries increasingly adopt interconnected systems and Internet of Things (IoT) devices, they become vulnerable to cyber threats. Malicious actors can exploit these vulnerabilities to gain unauthorized access, disrupt operations, or steal sensitive data, leading to potential financial losses, operational downtime, and compromised safety. The complexity and scale of industrial networks amplify these risks, as securing diverse systems across various locations becomes challenging.

Covid-19 Impact:

The COVID-19 pandemic significantly impacted industrial automation. It accelerated the adoption of automation technologies as companies sought to minimize human contact and maintain operations with fewer on-site personnel. Industries like manufacturing, logistics, and food production increasingly turned to robots and automated systems for tasks ranging from assembly lines to warehouse management. This shift not only ensured operational continuity but also highlighted the resilience and efficiency of automated processes during disruptions.

The Hardware segment is expected to be the largest during the forecast period

Hardware segment is expected to be the largest during the forecast period. The integration of hardware in industrial automation is revolutionizing manufacturing processes by enhancing efficiency, precision, and scalability. Advanced hardware components such as sensors, actuators, and programmable logic controllers (PLCs) form the backbone of modern industrial automation systems. These components enable real-time monitoring of machinery and processes, facilitating immediate adjustments to optimize performance and minimize downtime. Moreover, advancements in hardware have led to the development of interconnected systems that form the Industrial Internet of Things (IIoT). This interconnectedness allows for seamless data exchange between devices and centralized control systems, fostering intelligent decision-making and predictive maintenance capabilities.

The Automotive segment is expected to have the highest CAGR during the forecast period

Automotive segment is expected to have the highest CAGR during the forecast period. Automotive innovations, such as robotics and automated assembly lines, are being adapted across various industrial sectors to enhance efficiency, precision and safety. Advanced robotics, originally developed for automotive manufacturing, now automate tasks in industries ranging from electronics to food processing, significantly reducing human error and increasing productivity. Moreover, automotive-inspired technologies like machine vision systems and AI-driven quality control are improving product consistency and inspection accuracy. The seamless transfer of these technologies from automotive to industrial automation is reshaping production landscapes, enabling faster adaptation to market demands and reducing operational costs.

Region with largest share:

North America region commanded the largest share of the market over the extrapolated period driven by escalating demands for heightened productivity and efficiency. This trend is largely fueled by advancements in technologies such as robotics, artificial intelligence, and Internet of Things (IoT) applications, which are transforming traditional manufacturing and industrial processes across the region. Companies are increasingly investing in automation solutions to streamline operations, reduce costs and enhance overall output quality. Moreover, the need to remain competitive in a global market further propels this regional adoption of automation technologies across various industries including automotive, electronics and pharmaceuticals.

Region with highest CAGR:

Europe region is poised to hold profitable growth during the forecasted period. By imposing standards and directives aimed at promoting efficiency, safety and environmental sustainability, governments incentivize industries to adopt advanced automation technologies across the region. For instance, regulations such as the European Union's Machinery Directive ensure that automated systems meet stringent safety requirements, which not only protects workers but also encourages companies to invest in state-of-the-art automation solutions. Moreover, policies promoting energy efficiency and reducing carbon footprints push industries towards automation technologies that optimize energy usage and minimize environmental impact across the region.

Key players in the market

Some of the key players in Industrial Automation market include ABB Ltd, Eaton Corporation, Emerson Electric Co, General Electric Company, Keyence Corporation, Mitsubishi Electric Corporation, Omron Corporation, Rockwell Automation, Inc, Schneider Electric SE and Siemens AG.

Key Developments:

In June 2023, The Schaefer Systems International Pvt. Ltd launched a fully automated piece-picking system with numerous innovative features the SSI Piece Picking application. This versatile solution includes dedicated smart software and boasts advanced functions such as object recognition using artificial intelligence (AI), pick-and-place, patented gripping point determination, and extremely gentle product handling.

In June 2023, Mitsubishi Electric announced that its wholly owned subsidiary ICONICS, Inc., has formally agreed to completely acquire ICONICS UK, Ltd., which sells supervisory control and data acquisition (SCADA)1 software and develops related cloud applications. Mitsubishi Electric and ICONICS plan to leverage ICONICS UK's technology and to establish a Circular Digital-Engineering business model for factory-automation solutions that optimize factory equipment and systems.

In October 2022, Rockwell Automation Inc., a company dedicated to industrial automation and digital transformation, acquired the company CUBIC, which is dedicated to modular systems for the construction of electric panels.

Components Covered:

• Software
• Hardware
• Services

End Users Covered:

• Automotive
• Oil & Gas
• Pulp & Paper
• Chemicals
• Food and Beverages
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

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• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
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• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances